If you are considering starting your business, you may be confused and stressed with the prospect of having to make a lot of decisions. Remember that planning a business also requires you to set up your business, so that follows legal government guidelines. Here are a few tips on how to start a legal business.
Prepare a business plan – A clear well thought through business plan will help to serve as a blueprint for your company’s future operations. It will also serve as a document for obtaining capital and financing your operations.
Choose a location to set up your business – Although you may think that starting your business in your home state is best, there can be legal advantages if your business is opened in other jurisdictions.
Obtain financing or other forms of startup capital – Look at speaking to a few financial institutions that will offer you capital to start-up your business. This entire process can take Therefore, it is best to apply to at least three institutions at one given time.
Determine a legal structure for your business – There are many business entities, and they offer different advantages and disadvantages regarding tax implications, governance and legal and procedural requirements.
Register your business – Register your business in the jurisdiction you choose and renew your registration annually to ensure that your company remains legally in existence.
Obtain a Tax ID, licenses and permits – You will have to obtain a tax ID from the IRS, so you establish separate taxation as a business entity. Licences and permits will have to be obtained to operate within certain areas legally.